Unemployment in Transition Countries Driven by Low Aggregate Demand, Not Labor Market Rigidity.
The study looked at why unemployment is high in Central and East European countries. They found that the high unemployment is not due to incomplete adjustments from transitioning to a market economy or labor market rigidities. Instead, it is mainly because there is not enough demand for workers. This means that even though productivity is increasing, there are not enough jobs being created to lower unemployment rates.